20th Jun 2019 10:15
(Alliance News) - Homeserve PLC on Thursday set out several targets to accelerate growth and said that it has entered the home warranty market in North America with the launch of Total Home Protection product.
The UK-listed home emergency repairs business also said that it has bought the remaining 30% of its Spanish Home Experts business Habitissimo for EUR8.6 million.
Shares in Homeserve were trading 1.0% higher at 1,240.00 pence each in morning trade in London.
The company, which is holding an investor day on Thursday, said it will aim to attract 150,000 to 200,000 trades onto its Checkatrade platform, achieve revenue per trade of GBP1,200 to GBP1,300, achieve operating margins of 25% to 35%, and generate medium to long-term adjusted operating profits of GBP45 million to GBP90 million in the UK.
Checkatrade is an online directory of recommended and trusted tradesmen operated by Homeserve.
For its membership business, HomeServe revealed a new medium to long-term adjusted operating profit target of USD230 million. North America is HomeServe's biggest Membership business.
The profit target is based upon the company recruiting 6 million to 7 million customers, achieving income per customer of USD120 to USD125, building margins to 24% to 26%, and adding USD30 million to USD45 million of profit from Heating, Ventilation and Air Conditioning business.
Homserve expects to invest GBP10 million to GBP12 million in its Home Experts platform unit during 2020 financial, plus GBP2 million to GBP3 million in new markets. The Home Experts platform matches tradesman with customers in their local area who need their services.
Capital investment across all business lines in 2020 financial is expected to be around GBP50 million, excluding partner payments.
The company has commenced its new financial year well, it said, with performance in line with expectations and previous guidance.
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